Pet Financing – HSMC Ohio http://hsmcohio.com/ Thu, 13 May 2021 09:35:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://hsmcohio.com/wp-content/uploads/2021/04/default-150x150.png Pet Financing – HSMC Ohio http://hsmcohio.com/ 32 32 16 Types of Loans to Help You Make Important Purchases – Forbes Advisor https://hsmcohio.com/16-types-of-loans-to-help-you-make-important-purchases-forbes-advisor/ https://hsmcohio.com/16-types-of-loans-to-help-you-make-important-purchases-forbes-advisor/#respond Mon, 26 Apr 2021 06:13:52 +0000 https://hsmcohio.com/?p=561 It’s always a good idea to save up money before making a large purchase. But in reality, that’s not always possible. That’s especially true for expenses like a college education, a car or a home, or even unexpected emergencies, like medical bills. When you can’t save money in advance, you can take out a loan. […]]]>


It’s always a good idea to save up money before making a large purchase. But in reality, that’s not always possible. That’s especially true for expenses like a college education, a car or a home, or even unexpected emergencies, like medical bills.

When you can’t save money in advance, you can take out a loan. However, you’ll need to understand what type of loan to shop for because there are specific loans for certain purchases.

Here are 16 types of loans that can help you make necessary purchases in your life:

1. Personal Loans

Personal loans are the broadest type of loan category and typically have repayment terms between 24 and 84 months. They can be used for just about anything except for a college education or illegal activities. People commonly use personal loans for things like:

  • Vacations
  • Weddings
  • Emergencies
  • Medical treatment
  • Home renovations
  • Debt consolidation
  • Relocating to a new city
  • Computers or other pricey electronics

Personal loans generally come in two forms: secured and unsecured. Secured loans are backed by collateral—such as a savings account or a vehicle—that a lender can take back if you don’t repay your full loan amount.

Unsecured loans, on the other hand, require no collateral and are backed by your signature alone, hence their alternate name: signature loans. Unsecured loans tend to be more expensive and require better credit because the lender takes on more risk.

Applying for a personal loan is easy, and typically can be done online through a bank, credit union or online lender. Borrowers with excellent credit can qualify for the best personal loans, which come with low interest rates and a range of repayment options.

2. Auto Loans

Auto loans are a type of secured loan that you can use to buy a vehicle with repayment terms between three to seven years. In this case, the collateral for the loan is the vehicle itself. If you don’t pay, the lender will repossess the car.

You can typically get auto loans from credit unions, banks, online lenders and even car dealerships. Some car dealerships have a financing department where they help you find the best loan from partner lenders. Others operate as “buy-here-pay-here” lenders, where the dealership itself gives you the loan. These tend to be much more expensive, though.

3. Student Loans

Student loans are meant to pay for tuition, fees and living expenses at accredited schools. This means that you generally can’t use student loans to pay for specific types of education, such as coding bootcamps or informal classes.

There are two types of student loans: federal and private. You get federal student loans by filling out the Free Application for Federal Student Aid (FAFSA) and working with your school’s financial aid department. Federal student loans generally come with more protections and benefits but charge slightly higher interest rates. Private student loans come with much fewer protections and benefits, but if your credit is good, you could qualify for better rates.

4. Mortgage Loans

Mortgages help you finance the purchase of a home, and there are many types of mortgages available. Banks and credit unions are common mortgage lenders; however, they may sell their loans to a federally-sponsored group like Fannie Mae or Freddie Mac if it’s a qualified mortgage.

There are also government-backed loan programs available for certain groups of people, including:

  • USDA loans for rural, low-income homebuyers.
  • FHA loans for people with low- to moderate-income levels.
  • VA loans for active-duty servicemembers and veterans.

5. Home Equity Loans

If you have equity in your home, you might be able to use a home equity loan, also known as a second mortgage. The equity you have in your home—the portion of your home that you own, and not the bank—secures the loan. You can typically borrow up to 85% of your home’s equity, which is paid out as a lump sum amount and repaid over five to 30 years.

To find out your home’s equity, simply subtract your mortgage balance from your home’s assessed value. For example, if you owe $150,000 on your mortgage and your home is worth $250,000, then your equity is $100,000. Considering the 85% loan limit rule, and depending on your lender, you could potentially borrow up to $85,000 with $100,000 in equity.

6. Credit-builder Loans

Credit-builder loans are small, short-term loans that are taken out to help you build credit. Since they’re marketed toward people with zero or limited credit, you don’t need good credit to qualify, unlike regular loans. You can typically find credit-builder loans at credit unions, community banks, Community Development Financial Institutions (CDFIs), lending circles or online lenders.

Instead of receiving the loan funds up front as you would on a traditional loan, you make fixed monthly payments and receive the money back at the end of the loan term. Credit-builder loans typically range between $300 to $3,000 and charge annual percentage rates (APRs) between 6% and 16%.

Credit-builder loans can be a very affordable and safe way to start building credit, especially for young people. If you put your payments on auto-pay, for example, you’ll never have to worry about making your payments and you can build credit entirely on auto-pilot.

7. Debt Consolidation Loans

Debt consolidation lets you streamline your payments by applying for a new loan to pay off your other debts, therefore leaving you with only one monthly loan payment. If you have high-interest debts like credit cards or a high-interest personal loan, a debt consolidation loan can help you in two ways. First, you could qualify for a lower monthly payment. Second, you could qualify for lower rates, which can help you save money over the long term.

In order to get a debt consolidation loan that improves your payments, though, you’ll need to first shop around for a lower rate than your current loan or credit card. You’re also more likely to qualify if your credit has improved since you took out your current loan or card. Once you qualify, your lender may automatically pay the debts for you, or you will need to do it yourself.

8. Payday Loans

Payday loans are a type of short-term loan, usually lasting just until your next paycheck. These loans aren’t credit-based, and so you don’t need good credit to qualify. However, these loans are often predatory in nature, for a couple of reasons.

First, they charge very high finance fees, which can work out to around 400% APR in some cases (the finance fee isn’t the same thing as an APR). Second, they allow you to roll over your loan if you can’t pay it off by your next paycheck. It sounds helpful at first—until you realize even more fees are tacked on, which trap a lot of people in debt obligations that can be higher than what they originally borrowed.

9. Small Business Loans

There are several types of small business loans, including Small Business Administration (SBA) loans, working capital loans, term loans and equipment loans. These loans help small businesses, typically companies with up to 300 employees, fund their operations. Local businesses—like landscapers, hair salons, restaurants or family-owned grocers—and sole proprietors—such as freelancers who still have a traditional day job—also can apply.

Small business loans typically have more qualification requirements than personal loans, especially if you’re applying for an SBA loan. However, the rewards are well worth it because these loans can give your business the financing it needs to grow. Alternative business financing methods, like invoice factoring or merchant cash advances, may be more costly, leaving small business loans as the best option for business financing.

10. Title Loans

Title loans are another type of secured loan where you pledge the title for a vehicle you own—such as a car, truck or RV—as collateral. Your loan limit typically is anywhere between 25% to 50% of your car’s value, evaluated by the lender. Lenders that offer title loans also charge a monthly fee of 25% of the loan amount, which translates to an annual percentage rate (APR) of at least 300%, making these a costly financing option.

These loans are different from traditional auto or RV loans for a few reasons:

  • They charge very high rates.
  • You give the title to the lender as collateral for the loan.
  • They’re short-term loans, typically up to 30 days.

Thus, title loans generally fall in the same category as payday loans: they’re very expensive, short-term, small-dollar loans that are often considered predatory.

11. Pawnshop Loans

Pawnshop loans are another type of loan we usually don’t recommend because they’re very expensive, have small loan limits and require quick repayment. To get a pawnshop loan, you’ll bring something of value to the pawnbroker, such as a power tool, a piece of jewelry or a musical instrument.

The pawnbroker will assess the item, and if they offer you a loan, it’ll typically be worth 25% to 60% of the item’s resale value. You’ll receive a pawn ticket, which you’ll need when you return to repay the loan, typically within 30 days. If you don’t return, or if you lose your ticket, the pawnbroker gets to keep your item to resell and recoup their money.

12. Boat Loans

Boat loans are specifically designed to finance the purchase of a boat and are available through banks, credit unions and online lenders. The loans can either be unsecured or secured, with secured loans using your boat as collateral. As with any vehicle-related loan, it’s crucial to keep depreciation in mind.

Boats and other vehicles lose value over time, especially if you buy a new boat. If you choose a long-term loan, don’t make a very large down payment and/or sell your boat soon after you buy it, it’s possible to owe more on the loan than you can sell it for. This means you’ll need to keep paying off the loan even after you sell the boat, and that’s not an enviable position to be in.

13. Recreational Vehicle (RV) Loans

RV loans can either be unsecured or secured loans. Smaller RV loans are typically unsecured and work similarly to a personal loan while expensive, luxury RVs are secured—with the RV serving as collateral—and work more like an auto loan.

Depending on the lender, you can find RV loans for around $25,000 that you repay over a few years, but you also can find loans up to $300,000 that you repay over 20 years.

RVs are fun and they can help you and your family enjoy quality time together. But it’s important to keep depreciation in mind, especially if you’re buying a new RV and you think you’ll be selling it at some point down the line.

14. Family Loans

Family loans are informal loans that you get from family members (and sometimes friends). You may choose to turn to family if you can’t qualify for a traditional loan from a bank or lender, for example.

Family loans can be useful because you don’t need any credit to get one. If your family member trusts you and they have the financial means to do so, they can choose to give you the loan.

But that doesn’t mean you should take advantage of your family member’s generosity. It’s still a good idea to draft up and sign a loan agreement, including interest payments, due dates, late fees or other consequences for non-payment. You can find draft agreements and payment calculators online to help you do this.

15. Land Loans

There are a lot of reasons people buy land. Maybe they want to build a house on it, harvest its natural resources or lease it out to other people and businesses. But land can be expensive, and that’s where a land loan can come in handy.

Land loans generally come in two forms: improved and unimproved land loans. Improved land loans are for plots that are ready to build on. For example, they might have a well and septic tank already installed, power lines or a driveway. Unimproved land loans, on the other hand, are for a plot of vacant land, which may or may not be easy to access.

If you choose to take out a land loan, you can expect to have higher interest rates and more strict down payments and credit requirements than other property loans because they’re a more risky transaction for a lender.

16. Pool Loans

Unless you’re buying an inflatable kiddie pool, chances are you’ll need to take out a loan if you want to add a pool to your property. Pools can run anywhere from $3,000 up to $100,000 or more depending on how fancy you want to go, according to Fixr.

Just like with RVs, boats and other lifestyle loans, it’s a good idea to consider the resale value of your house if you add a pool onto it. Not everyone wants to own a pool, so if you plan on selling your house in the future, you could be limiting the number of people who want to buy your home.

Alternative Financing Options

We’ve talked about a lot of the different types of loans you can get. But if you need to borrow cash, you have other financing options beyond loans, including:

  • Credit cards. Credit cards are an easy way to pay for all but the largest purchases, and may even come with rewards for specific expenses.
  • Line of credit. You can get a line of credit from your bank or credit union. You can even get secured credit, such as a home equity line of credit (HELOCs).
  • Gift. If you have a wealthier friend or family member and you don’t mind schmoozing them up, you can sometimes get the cash you need that way. Many parents save for their child’s college education or even down payments on a home, for example.



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Edible Insects Market Worth $4.63 billion by 2027- Exclusive Report by Meticulous Research® Covering Emerging Growth Factors, Latest Trends and Forecasts, and Pre and Post COVID-19 Estimates https://hsmcohio.com/edible-insects-market-worth-4-63-billion-by-2027-exclusive-report-by-meticulous-research-covering-emerging-growth-factors-latest-trends-and-forecasts-and-pre-and-post-covid-19-estimates/ https://hsmcohio.com/edible-insects-market-worth-4-63-billion-by-2027-exclusive-report-by-meticulous-research-covering-emerging-growth-factors-latest-trends-and-forecasts-and-pre-and-post-covid-19-estimates/#respond Mon, 26 Apr 2021 05:56:37 +0000 https://hsmcohio.com/?p=533 London, March 31, 2021 (GLOBE NEWSWIRE) — According to a new market research report “Edible Insects Market by Product (Whole Insect, Insect Powder, Insect Meal, Insect Oil) Insect Type (Crickets, Black Soldier Fly, Mealworms), Application (Animal Feed, Protein Bar and Shakes, Bakery, Confectionery, Beverages) – Global Forecast to 2027”, published by Meticulous Research®, the edible insects […]]]>


London, March 31, 2021 (GLOBE NEWSWIRE) — According to a new market research report “Edible Insects Market by Product (Whole Insect, Insect Powder, Insect Meal, Insect Oil) Insect Type (Crickets, Black Soldier Fly, Mealworms), Application (Animal Feed, Protein Bar and Shakes, Bakery, Confectionery, Beverages) – Global Forecast to 2027”, published by Meticulous Research®, the edible insects market is expected to grow at a CAGR of 26.5% from 2020 to reach $4.63 billion by 2027.

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The current food production needs to be doubled in order to fulfill the food requirements of the growing population. This effort would require finding environment-friendly and sustainable food production methods and food sources with high nutritional content. In this case, edible insects could be a great solution as they satisfy the human need for food and are highly nutritious. Also, using insects for food over conventional meats and other sources has ecological advantages. Insects can be a good source of protein for animals as they are not only rich in protein but can also extract protein from waste material and facilitate significant reductions in the volume of waste. The Black Soldier Fly (Hermetia illucens) is a revolutionary insect species that has emerged as a solution in the form of an alternative meal source for the feed industry. Black Soldier Fly Larvae (BSFL) can grow on any type of organic waste and convert the manure into protein and lipids. As BSFL are rich in protein (40- 44%) and lipids (7-36%), they are a cheaper, alternative source of protein for animal feed applications.

The growth of edible insects market is mainly attributed to the growing greenhouse gas emissions from the livestock and poultry industries, the high nutritional value of insects, the low environmental impact of their entire life cycle, and the low risk of transmitting zoonotic diseases. However, the non-standardized regulatory framework, psychological and ethical barriers to using insects as food, and allergies due to insect consumption are factors that are expected to restrain the growth of this market.

Impact of COVID-19 on Edible Insects Market:

Alike other industries, the COVID-19 pandemic poses numerous challenges to the food sector, especially meat products producers across the globe. The meat products manufacturing industry has faced major challenges, including the risk of continuing production, distribution, transportation, and other supply chain activities; lack of workforce; and delays in development activities. The rescheduling of private investment financing and public funding initiatives towards developing the sector has further restricted its development. These factors are expected to impact the meat products industry, thereby driving the demand for alternative protein substitutes, including insect protein products.

In addition to this, the exact source of COVID-19 is still not known and undetermined. However, according to some theories and initial claims of health officials from WHO, COVID-19 might have originated in bats, while others say the virus was transmitted to humans in Wuhan, China at a wet market, where animals like bats, snakes, rabbits, and birds are illegally sold. So, the fear and delusion of coronavirus transmission from animals, the use of animals and animal-based products have hit hard.

In May 2020, considering that the virus was transmitted from animals, Wuhan’s municipal government banned breeding, hunting, and consuming wild animals for five years. This is expected to trigger restrictions on the consumption of certain animals and related products across various cities and countries across the world. This further will increase the shortage of meat products and accelerate the demand for alternative substitutes like edible insects and plant-based products.

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Moreover, increasing health & wellness trends and rising health awareness, such as the risk of viral infections, cardiovascular diseases, liver diseases, disorders of bone and calcium balance, and increased risk of certain cancer associated with the long-term use of animal proteins, has created the traction for sustainable protein sources like edible insects that can be costeffectively reared on waste feed and water. To capture this traction in the edible insects industry, many vendors are focusing on enhancing their production capacities, processes, end products, and receiving funds from investors. Some of the major strategic developments undertaken in 2020 were:

  • In March 2020, Protix BV, an insect farmer that breeds larvae from the black soldier fly and processes them into ingredients like proteins and lipids, announced that it raised funds (undisclosed amount) from Rabo Corporate to enhance its insect production facility in the Netherlands.
  • In May 2020, Insectta Pte. Ltd., a Singapore-based startup dealing with the extraction of valuable biomaterials from insects, received a second investment from Trendlines Agrifood Fund Pte. Ltd. (the Fund of The Trendlines Group Ltd.). This is expected to increase the value and diversify the products attained from food waste valorization
  • In May 2020, Beta Hatch, a U.S.-based insect rearing technology company, received USD 3 million in a Series A1 funding round from Cavallo Ventures, Wilbur-Ellis’ venture capital arm; and early-stage venture firm–Innova Memphis. The round also included investments from Klein Private Equity Investment and Brighton Jones Investment Partners. Beta Hatch is expected to open its production facility for mealworm for animal feed in North America
  • In May 2020, the ValuSect (Valuable Insects) project was introduced to drive edible insect production and processing techniques for insect-based production in Europe. The project received EUR 2.08 million funding grant from Interreg NorthWest Europe. The ValueSect partner services are intended to help establishments develop new products, conduct consumer taste panels, optimize insect breeding, and advance insect food processing. This project is planned to run till June 2023.
  • In March 2020, the Thai Union Group (Thailand) announced that it is expected to invest ~USD 30 million in alternative proteins and other foodtech innovations. The company also invested an undisclosed amount in an insect protein start-up, Flying Spark (Israel). This is expected to enhance the company’s presence in the edible insects market in the coming years.

Thus, the rising preference for alternative proteins over animal proteins as a rich source of protein & immunity booster during the current global outbreak of COVID-19 has created a new wave of interest in the edible insects market.

Key Findings in the Edible Insects Market Study:

The global edible insects market studied in this report is segmented by product, insect type, application, end use, and geography.

Based on product, the edible insects market is segmented into whole insects, insect powder, insect meal, and insect oil. In terms of value, in 2020, the whole insects segment accounted for the largest share of the overall edible insects market. The largest share of this segment is attributed to easy availability, lower costs compared to processed insects, and unavailability of processing techniques in some regions. However, the insect powder segment is expected to grow at the highest CAGR during the forecast period. People’s increasing inclination towards fitness and wellness; rising number of health clubs and fitness centers preferring and serving insect powder; the emergence of several start-ups producing insect protein bars and shakes; and busy lifestyles that demand highly nutritious and convenient foods, such as insect powder are some of the major drivers for the growth of this segment.

Based on insect type, the edible insects market is mainly segmented into crickets, mealworms, black soldier flies, buffalo worms, grasshoppers, ants, silkworms, cicadas, and other edible insects. In terms of value, in 2020, the crickets segment accounted for the largest share of the overall edible insects market. The large share of this segment is mainly due to the high nutritional value, easy farming, and easy processing of crickets; their incorporation into various food recipes and products, and the increasing demand for cricket-based products, such as protein powders, protein bars, and snacks.

Based on application, the edible insects market is segmented into processed whole insects, processed insect powder, animal and pet feed products, insect protein bars and protein shakes, insect baked products and snacks, insect confectioneries, insect beverages, and other applications. In terms of value, in 2020, the processed whole insects segment commanded the largest share of the overall edible insects market. The large share of this segment is mainly attributed to the huge availability of whole insects, growing consumption of insect-based foods, the high nutritional value of insects, and the growing demand for environment-friendly, alternative sources of protein.

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Based on application, the edible insects market is segmented into processed whole insects, processed insect powder, animal and pet feed products, insect protein bars and protein shakes, insect baked products and snacks, insect confectioneries, insect beverages, and other applications. In terms of value, in 2020, the processed whole insects segment commanded the largest share of the overall edible insects market. The large share of this segment is mainly attributed to the huge availability of whole insects, growing consumption of insect-based foods, the high nutritional value of insects, and the growing demand for environment-friendly, alternative sources of protein.

The global edible insects market is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In terms of value, in 2020, the Asia-Pacific region accounted for the largest share of the global edible insects market, followed by Europe and North America. A well-established commercial farming market for edible insects, especially in Thailand, the presence of insect diversity, huge availability, positive attitude towards the consumption of insects as food & feed, the absence of regulatory barriers on using insects as food & feed, and the presence of key market players in the region are the major factors contributing to the large share of the APAC market. However, The North American region is slated to register the highest CAGR during the forecast period, primarily due to the growing demand for environment-friendly high-protein diets, aversion to highly processed foods, increasing demand for insect-based foods, presence of a large number of insect-based food product manufactures, and growing concerns about meat production.

The edible insects market is very fragmented with the presence of many small players. The key players operating in the global edible insects market are Protifarm Holding NV, EntomoFarms, Haocheng Mealworms Inc., Agriprotein (Insect Technology Group Holdings U.K. Ltd.), Ynsect SAS, Deli Bugs Ltd., Hargol FoodTech, Aspire Food Group, All Things Bugs, LLC, Tiny Farms, Global Bugs Asia Co., Ltd., Beta Hatch Inc., EntoCube Ltd., Rocky Mountain Micro Ranch, Armstrong Cricket Farm Georgia, Cowboy Cricket Farms, ENTOBEL HOLDING PTE. LTD, Entofood Sdn Bhd, EnviroFlight Corporation, SFly Comgraf SAS, Hexafly, F4F SpA , Protix B.V., Enterra Corporation, InnovaFeed, Nutrition Technologies Group, Protenga Pte Ltd., and nextProtein S.A.S., among many other local and regional players.

To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/edible-insects-market-5156 

Scope of the Report:

Edible Insects Market, by Product

  • Whole Insects
  • Insect Powder
  • Insect Meal
  • Insect Oil

Edible Insects Market, by Insect Type

  • Crickets
  • Mealworms
  • Black Soldier Flies
  • Buffalo Worms
  • Grasshoppers
  • Ants
  • Silkworms
  • Cicadas
  • Others

Edible Insects Market, by Application

  • Processed Whole Insects
  • Animal and Pet Feed Products
  • Processed Insect Powder
  • Insect Protein Bars and Protein Shakes
  • Insect Baked Products and Snacks
  • Insect Confectionaries
  • Insect Beverages
  • Others

Edible Insects Market, by End Use

  • Human Consumption
  • Animal Nutrition

Edible Insects Market, by Geography

  • Asia-Pacific (APAC)
    • Thailand
    • China
    • South Korea
    • Vietnam
    • RoAPAC
  • Europe
    • The Netherlands
    • Belgium
    • France
    • U.K.
    • Denmark
    • Finland
    • Germany
    • Rest of Europe
  • North America
  • Latin America
  • Middle East and Africa

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Amidst this crisis, Meticulous Research® is continuously assessing the impact of the COVID-19 pandemic on various sub-markets and enables global organizations to strategize for the post-COVID-19 world and sustain their growth. Let us know if you would like to assess the impact of COVID-19 on any industry here- https://www.meticulousresearch.com/custom-research

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About Meticulous Research®

Meticulous Research® was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, the company has become the leading provider of premium market intelligence in North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The name of our company defines our services, strengths, and values. Since the inception, we have only thrived to research, analyze and present the critical market data with great attention to details. With the meticulous primary and secondary research techniques, we have built strong capabilities in data collection, interpretation, and analysis of data including qualitative and quantitative research with the finest team of analysts. We design our meticulously analyzed intelligent and value-driven syndicate market research reports, custom studies, quick turnaround research, and consulting solutions to address business challenges of sustainable growth.

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https://hsmcohio.com/edible-insects-market-worth-4-63-billion-by-2027-exclusive-report-by-meticulous-research-covering-emerging-growth-factors-latest-trends-and-forecasts-and-pre-and-post-covid-19-estimates/feed/ 0
Going to the vet: what happens when private equity invests in a cottage industry https://hsmcohio.com/going-to-the-vet-what-happens-when-private-equity-invests-in-a-cottage-industry/ https://hsmcohio.com/going-to-the-vet-what-happens-when-private-equity-invests-in-a-cottage-industry/#respond Mon, 26 Apr 2021 05:36:21 +0000 https://hsmcohio.com/?p=476 On August 22, 2019, an Irish farmer sought urgent treatment for a calf with a broken leg. He hauled it to Donegal Animal Hospital, which served thousands of animal owners around the town of Letterkenny.  But treatment was not forthcoming there. The practice had been abruptly shut down that day by its owners, private equity-backed […]]]>


On August 22, 2019, an Irish farmer sought urgent treatment for a calf with a broken leg. He hauled it to Donegal Animal Hospital, which served thousands of animal owners around the town of Letterkenny. 

But treatment was not forthcoming there. The practice had been abruptly shut down that day by its owners, private equity-backed UK veterinary care company IVC Evidensia. According to three witnesses and documents from the practice, although some vets were still present, the man was told to seek help elsewhere — which the farmer eventually did.

“The cow was in serious pain,” says Robert Gilchrist, a farmer who was trying to collect medicine at the time and who says he was shocked at the delay in providing pain relief. “The man that owned the calf said ‘What kind of business are you running?’ The vets there . . . told them to go away.”

IVC says the animal was seen that day by a different practice, while another surgery had immediately taken over farm animal cases and medical records. It says the matter was handled properly and the closure of the practice “had no impact on the treatment of the animal”.

Yet the abrupt closure of the practice, after 22 years of providing veterinary care in the area, created political waves. The Donegal business was one of more than 300 taken over by IVC that financial year as part of a wider consolidation of independent surgeries around Europe, driven by its owners, Swedish private equity group EQT. 

IVC Evidensia vets: supporters of Europe’s largest vetcare provider say that in an industry traditionally dominated by men, it offers a career path more suited to younger women juggling families with careers © IVC Evidensia

IVC’s acquisition spree is a test case of what happens when the private equity model is applied to the modern version of a cottage industry — historically, vets have tended to be small, locally-owned businesses.

The company believes its greater scale can bring better management to the booming vetcare sector and introduce new technology and training that will help with both administration and animal care. Its supporters say that in an industry traditionally dominated by men, it offers a career path more suited to younger women juggling families with careers.

“Our decentralised model promotes innovation and clinical independence for our vets, balanced with integrated support functions such as procurement, veterinary advisers and clinical boards,” says IVC.

But the episode in Donegal has helped galvanise some opposition to IVC. Some critics say that, in an industry that straddles business and public service, the private equity approach tips the scales too far towards profits. 

The political backlash has been particularly strong in Ireland. Irish lawmaker Jackie Cahill has brought forward a private members’ bill aiming to bar corporates from running veterinary practices — something that was only permitted four years ago. 

He says the closure of the practice left some farmers without access to 24-hour service. “The corporate structure . . . has failed in the UK,” where it is more common, having begun more than two decades ago, Cahill says. “What happened in Donegal, we don’t want to see that happening again.”

Vets, like doctors, often step in to treat emergencies even in tough circumstances, and UK and Irish professional bodies say animal welfare should be their priority. 

Other animal owners were affected by the Donegal closure, which IVC says was for regulatory and staffing reasons. “Farmers were left without access to veterinary services and it even caused difficulties for neighbouring practices who simply weren’t in a position to take over the workload,” says Finbarr Murphy, chief executive of industry group Veterinary Ireland. 

Irish lawmaker Jackie Cahill has brought forward a private members’ bill aiming to bar corporates from running veterinary practices

A farmer feeds his cattle in Northern Ireland. One farmer in Donegal was told to seek help elsewhere when he arrived at an IVC Evidensia-owned practice with a calf with a broken leg © Mstyslav Chernov/AP

Buying up clinics

The rise of IVC illustrates the rapid transformation that private equity can bring when it sweeps through an industry. 

The company has been on a debt-fuelled expansion in recent years. Since EQT bought IVC in 2016 and merged it with Swedish group Evidensia in 2017, it has been on a clinic-buying spree, snapping up independent practices and small chains and rolling them into what is now Europe’s largest vetcare provider with 1,500 sites.

“It’s a giant acquisition machine,” says a former employee. “IVC was just minting millionaires across the UK.” A vet who sold his practice to the group says he “almost fell off his chair” on hearing how much it was offering. The vet, who requested anonymity, says IVC mistook his shock for hesitation — and increased its offer. 

To the outside world, the transformation of hundreds of vet practices has been largely invisible. Some of its surgeries emphasise their longstanding local connections and family-run approach and IVC avoids rebranding them when it takes over. “People like to take their dog to the local vets and not feel like it’s a corporate machine,” one adviser close to the company said. 

The IVC deal stands to be lucrative for its owners. It had been preparing to float in London this year until a last-minute change of course. Instead, in a February deal, Nestlé and California-based private equity group Silver Lake agreed to lead a €3.5bn investment at a valuation of €12.3bn. At the same time, the original EQT fund that bought the company sold most of its stake and a newer EQT fund bought in.

Trainee vets at Glasgow university. In 2019, the Royal College of Veterinary Surgeons said more than four in 10 UK vets worked either for a corporate or a joint venture with a corporate © Jeff J Mitchell/Getty

The valuation is four times higher than just two years ago, and more than 32 times IVC’s earnings in the year to March — far higher than the levels at which buyout groups typically buy businesses, with the 2020 average in Europe being 12.6 times earnings according to a Bain & Co report. It is a “stratospheric valuation compared with those typically seen in leveraged finance”, according to a report published in April by data provider 9Fin.

Such a valuation stands to make a big contribution to the pool of so-called “carried interest” bonus payments available to EQT executives, under standard private equity pay structures.

On buying a practice, IVC centralises procurement and finance, and appoints business support managers to oversee practices. IVC sets financial targets for practices that several vets described as challenging. It recommends drug prices centrally, but says local practice management ultimately decides what to charge. However, the effort to meet targets can lead to steep price increases.

One vet in southern England says the price of Metacam, a widely dispensed anti-inflammatory painkiller, rose at their practice by 28 per cent to £82.79 for a 100ml bottle after IVC took over. The price of ProZinc, an insulin for diabetic cats, rose 39 per cent to £99.34, the vet says, and Fortekor, a heart medication, rose more than 78 per cent to £76.85.

“We probably were undercharging before, but it’s difficult when the client comes in and this has gone up by 30 per cent, that by 40 per cent,” says the vet, who asked not to be named. IVC says drug price increases recommended by head office have been more modest, with Metacam rising by 5.6 per cent on average, ProZinc 6.8 per cent and Fortekor 9.9 per cent between October 2019 and December 2020. 

The surgeries run by IVC have also stripped back an informal practice of discounting fees for struggling patients, says another former practice owner, who sold to IVC.

“Vets are terrible. We all discount our fees massively to clients to help them, we do payment plans and all that sort of thing. [Corporates are] very much less flexible,” the vet says. IVC says it has a £1m hardship fund for clients in need, while clinical directors have discretion on pricing for “hardship cases”.

Metacam, a widely dispensed anti-inflammatory painkiller. One vet in southern England says its price rose at their practice by 28 per cent to £82.79 for a 100ml bottle after IVC took over © Alamy

Spending on UK veterinary services hit £4.5bn in 2019, a 57 per cent rise since 2015, according to the Office for National Statistics © Jeff J Mitchell/Getty

While IVC says it has less than 20 per cent market share across the UK, it has established a considerable presence in some areas. As of 2020, the latest figures available, there were 29 local areas of the UK — defined using administrative boundaries which in most cases correspond to local government districts — that had five or more vet practices of which IVC operated at least half, according to research by Aldwych Partners, an advisory firm, out of 400 areas in total.

That included 17 of the 32 vet practices in Birmingham, five of seven in Torfaen, south Wales, and four of five in Lancashire’s Ribble Valley, according to Aldwych. The figures cover a different metric than that typically used by competition authorities, which tend to study the distance travelled by customers, since pet owners may travel outside those boundaries to seek treatment. The company says those local areas in isolation don’t indicate competition concerns and that there is sufficient choice and competition.

If several local practices raise prices under a recommendation from IVC, customers may not realise the hikes are connected, says Andrew Taylor, co-founder of the consultancy.

“I bet there are a load of people out there who have no idea that [many of] the practices in their local area are owned by the same company,” says Taylor, a former senior director at the UK Competition Commission, the precursor to the Competition and Markets Authority. “At some point [the industry] is likely to be a candidate for the CMA to investigate.” 

The figures, which exclude equine and farm animal practices, were derived from a practice-finder tool on the company’s website in February 2020.

One Northern Irish customer says she took her two-year-old cat to the vet without realising the practice had been taken over. “They were bought by IVC in recent years — but continue to operate under their original name, so I had no idea really,” she says. “What struck me most of all was the turnover in vets and nurses, a new one each day, and each day I had to brief them on my cat’s needs.”

IVC says it uses practices’ websites, adverts, posters and stationery to inform customers it owns a practice. While it provides continuity of care for appointments booked in advance, clients needing emergency treatment see a vet on a duty rota.

IVC adds: “As Europe’s largest veterinary care provider, we provide the highest quality care to our patients, and operate in a very competitive market which has six large national groups and thousands of independents.”

A vet operates on a cat. Pet owners are spending ever-larger sums on their animals, from higher quality food and treats to more complex surgical procedures © Jeff J Mitchell/Getty

Vetcare boom

EQT — the owner of IVC — is one of several large businesses to have rushed into vetcare in recent years. Rival vet groups include Aim-listed CVS; Vets4Pets, owned by retailer Pets at Home; private equity-backed Medivet; private equity-owned VetPartners; and Linnaeus, owned by US confectionery giant Mars. In 2019, the Royal College of Veterinary Surgeons said more than four in 10 UK vets worked either for a corporate or a joint venture with a corporate. 

Investors are drawn to the idea that owners are spending ever-larger sums on their animals, from higher quality food and treats, to fashion accessories like quilted dog coats, to more complex surgical procedures when pets or other animals are ill.

Spending on UK veterinary services hit £4.5bn in 2019, a 57 per cent rise since 2015, according to the Office for National Statistics, and is expected to rise after Covid-19 lockdowns boosted pet ownership. 

IVC is among those to have benefited. Its like-for-like sales, excluding the impact of acquisitions, grew 8 per cent in both 2019 and 2020, due to rising demand, its “pricing initiatives” and more complex treatments, a Moody’s report published in April said.

EQT forecasts rapid growth at the company, with earnings before interest, tax, depreciation and amortisation predicted to rise from £248m in the year to September 2020 to £400m the following year and about £500m in 2022, according to people familiar with the company. Its owners expect about two-thirds of its revenue growth to come from buying more practices, with the rest from a growing market, the people say.

While some vets criticise the sort of rapid acquisition that IVC and others have conducted, others point to gains, saying the trend has benefited a younger, female-dominated generation of vets. 

“The old-fashioned way of running a practice, [vets] were mainly men and the practices were mainly small, you worked all the hours God sends and there was no work-life balance and then you got your partnership,” says one vet. 

Several vets contacted by the FT praised IVC’s graduate scheme, which includes two years of professional development and clinical coaching. James Harris, who worked for IVC for two years after it bought the White Cross chain of practices where he was a director, says he supports the IVC model. 

“I don’t think there is anyone better in the industry at acquiring veterinary practices. There has to be a change in the way we provide veterinary services to make businesses successful in the medium to long term. The current business model is not sustainable. IVC is ahead of the curve on that.”

Arbitraging acquisitions

IVC’s race for growth is the latest large example of a model used widely by the private equity industry. Known as a “roll-up”, it involves buying large numbers of smaller or independent businesses using debt, and merging them into a large group that can cut costs with economies of scale. Rival buyout groups have snapped up dental surgeries and petrol stations in a similar way.

The model rests, in part, on a piece of financial engineering known as “multiple arbitrage”, in which buyout groups calculate that the price they pay for a small business, per dollar of its earnings, is lower than the price they can later receive for it as part of a bigger group. 

In the process, the companies typically amass large debts. IVC’s junk-rated net debts and leases total £2bn, or 6.2 times the £322m it earned before interest, tax, depreciation and amortisation in the year to March, according to figures that the company shared with lenders.

IVC’s chief executive Stephen Clarke, who previously worked for WHSmith, hopes to encourage customers to use a subscription service for vaccinations and routine treatments © Richard P Walton/IVC Evidensia

The IVC Evidensia mobile app. The company wants to expand its online operations to include virtual consultations and an online pharmacy © Alamy

The European Central Bank has recommended six times earnings as an upper limit, only to be exceeded in exceptional cases, though the regulation applies to banks and not buyout groups, and many private equity groups use higher levels of leverage than this.

The rating agency Fitch has categorised IVC’s debts as “highly speculative”, meaning that while the company can currently repay them, there is a “material” risk of future default and its ability to repay is “vulnerable to deterioration in the business and economic environment”. 

IVC says its debts are prudent and are expected to fall further as the company grows, and that it is able to invest in the business as it sees fit.

Lenders providing that financing will be reassured that its €12.3bn valuation far outstrips its debt load, says Steven Hunter, chief executive of 9Fin. “Quite a lot has to go wrong before the debt starts to get impaired,” he says.

However, the debt raises the pressure for the business to perform, leaving less room for manoeuvre if revenues fall. “You don’t need to have high levels of debt to consolidate a fragmented industry,” says Peter Morris, associate scholar at Oxford university’s Saïd Business School.

Over the past two years, the company has brought in Kate Swann as chair and Stephen Clarke as chief executive — both former bosses of stationery chain WHSmith. IVC’s owners hope to encourage customers to use a subscription service for vaccinations and routine treatments, creating what the private equity industry refers to as a recurring revenue stream.

It also wants to grow its online operations, to which the involvement of Silver Lake, which focuses on technology-centred deals, is crucial. IVC will expand virtual consultations and its online pharmacy, people familiar with the matter say. 

Some of the business of treating sick and injured animals is less amenable to organic growth, however. “A lot of our work is emergency driven,” says one former IVC vet. “On the non-routine side of vetting, there is very little you can do to drum up work . . . you can’t rustle up a road traffic accident.” 



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Areas once redlined on KC’s East Side miss out on COVID relief https://hsmcohio.com/areas-once-redlined-on-kcs-east-side-miss-out-on-covid-relief/ https://hsmcohio.com/areas-once-redlined-on-kcs-east-side-miss-out-on-covid-relief/#respond Mon, 26 Apr 2021 04:53:38 +0000 https://hsmcohio.com/?p=394 This story was co-published in partnership with the Center for Public Integrity Darryl Answer knows a lot of entrepreneurs in the majority-Black East Side of Kansas City, people running companies or side gigs. But the local pastor couldn’t think of even one who’s received help from the federal government’s pandemic lifeline for small businesses. That’s […]]]>


This story was co-published in partnership with the Center for Public Integrity

Darryl Answer knows a lot of entrepreneurs in the majority-Black East Side of Kansas City, people running companies or side gigs. But the local pastor couldn’t think of even one who’s received help from the federal government’s pandemic lifeline for small businesses.

That’s because most hadn’t.

In Kansas City neighborhoods seared by decades of government-imposed racial discrimination, the Paycheck Protection Program’s forgivable loans arrived last year at lower rates than in the rest of the city. East Side areas “redlined” in the 1930s because Black people lived there — a federal decision that effectively blocked investment — received 17% fewer PPP loans than if they’d gotten an amount proportionate to their share of the city’s small employers. Affluent, largely white ZIP codes given preferential treatment by redlining received 23% more.

“Sometimes we look at this as an isolated situation,” said Answer, who is active in community development in addition to his work with New Community Church. “But I think all of these things have to be experienced in light of history.”

This pattern keeps repeating — here and across the country. In Kansas City, your level of wealth and even the length of your life are often defined by whether you live east or west of Troost Avenue, a longstanding racial dividing line. It’s a similar story in many other once-redlined cities.

At the same time, most of the government incentives intended to combat blight and joblessness in Kansas City flow downtown rather than to the East Side. Variations on that theme keep happening around the nation, too, an eerie — and legal — echo of what the 1930s federal Home Owners’ Loan Corp. wrought with its red pen.

“You can’t call it anything but redlining: public sector reinforcing private-sector discrimination,” said Greg LeRoy, executive director of Washington, D.C.-based Good Jobs First, which tracks and researches economic subsidies. “The net effect is reverse Robin Hood. You’re favoring places that need help the least.”

In Kansas City, people determined to put a stop to this may be making some headway. In 2017, Black community leaders convinced voters to earmark a slice of sales-tax revenue for economic development and stability efforts in a portion of the East Side. Some of that money has flowed as COVID-19 relief to small businesses that largely missed out on the federal help.

And after a years-long pressure campaign by public school leaders, civic groups and others alarmed at the loss of tax revenue that would otherwise fund public services, the City Council imposed modest limits on tax incentives in February.

But what happened with the Paycheck Protection Program is just the latest reminder that equal opportunity remains miles off. Congress asked the Small Business Administration to prioritize small firms in “underserved” markets for PPP loans, which should have quickly boosted places like Kansas City’s East Side. And yet assumptions in the program design — about business owners’ access to banking or certain documents or even clear information about who qualifies — didn’t account for the reality that many firms in such markets face, according to interviews with several dozen experts and entrepreneurs.

Sixty-three percent of eligible applicants for the relief grants that Kansas City approved for East Side business did not get a PPP loan. A handful were turned down for PPP help, according to a survey by LISC Greater Kansas City, a field office of the Local Initiatives Support Corp., which administered the city’s grants. Ten percent applied and got no response. Many didn’t apply at all, in most cases because they hadn’t heard about it.

It’s a finding that LISC said befuddled some regional business leaders. Never heard of the much-discussed PPP?

But that’s west-of-Troost thinking. For people living and working east of Troost, the LISC survey results show what officials should have known from the start: A program that isn’t designed to counteract the effect of decades-long discrimination will probably replicate it.

“You can write it in the law that you’re supposed to [beneficially] target Black and brown businesses, but then it gets out into the system,” said Melissa Patterson Hazley, vice chair of the board overseeing the economic development sales tax. “And the system isn’t designed to do that.”

Separated by a few miles and a vast gulf

Darrian Davis co-founded a fledgling industrial hemp business and an urban farm cooperative. He also owns a construction contracting business, holds rental properties in a limited liability corporation and runs a side effort buying items from auctions to resell.

He received a PPP loan for none of them.

“I remember thinking that I wasn’t going to be eligible,” he said. He kept hearing references to payroll, and he doesn’t have employees, so he didn’t apply.

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Darrian Davis, who has lived in 64128 for 15 years, co-owns several businesses that include an urban farm cooperative. He is seen here at the Kansas City Urban Orchard. Rich Sugg rsugg@kcstar.com

It’s possible he could have gotten PPP money. One-person operations can qualify, and the SBA tweaked the program in January and again in February and March to try to make it more equitable. Even so, Davis might have fallen through the eligibility cracks — or ended up like a small dessert maker near him who jumped through the hoops last year and received just $416.

The East Side ZIP code where Davis lives, 64128, was one of the few places in Kansas City where Black people were permitted to live during the redlining era. Even today, there’s just one bank branch. Nearly a third of residents live below the poverty line. Home values are low, making it hard to build generational wealth.

When the SBA handed out PPP loans last year, only 59 made it to 64128. Compared with its share of small employers, that’s one of the lowest levels in the city.

Public Integrity, which itself received PPP loans, sued the SBA last year to release the information about recipients that made this analysis possible. The newsroom melded that dataset with Census Bureau figures and redlining-map information from a team led by the University of Richmond. It’s not a perfect measure because the federal government doesn’t track the universe of potentially PPP-eligible businesses at a local level, but comparing loans to the share of small employers helps show which areas are getting more or less than expected.

For some very small businesses in 64128, both a lack of assistance and a process that seemed to be continually changing acted as barriers. As she attempted to keep renovations going on a transitional house for women leaving prison, Monecia Smith contacted the SBA for help. She said she didn’t get anywhere. Then she reached out to Bank of America, but at that point last year the PPP funding was gone.

“I don’t know anyone that applied for it,” said Answer, the pastor, who lives in that ZIP code. Some “have multiple hustles, whether it be lawn care, catering, different things to survive. No one’s making a ton of money.”

About two-and-a-half miles southwest, across the Troost Avenue divide, sits the 64113 ZIP code. Stretching from the state line to Oak Street, the zip code includes much of Brookside, reaching Gregory Boulevard to the south and W. 55th Street to the north.

Here, prohibitions on Black residents were written into deeds in a pre-redlining practice that developer J.C. Nichols helped spread around the country. The Home Owners’ Loan Corp. graded these neighborhoods highly desirable in the 1930s, a stand-out green on a map pockmarked with red.

Today, 90 percent of residents in 64113 are white. The typical household makes $138,000, five times the figure in Davis’s community. And 64113’s access to PPP loans, 262 in all, was among the highest in Kansas City compared with its share of small employers — 92 loans more than would have been expected.

Those loans helped many of the businesses that define the Brookside area, including small shops, a barber, pet store and clothing boutique along and near 63rd Street. Nearby law offices, Realtors and restaurants also benefited.

Map-PPP-loan-map.jpg

Davis was not surprised to hear it. Just as the consequences of redlining still linger in his neighborhood, he said, marking some communities green has also compounded over time.

“Any disparity you can think of,” he said, “you’ll see the same pattern.”

In fact, only one Kansas City ZIP code that was predominantly redlined with Black residents in the 1930s did not have worse-than-average access to the PPP last year. A key secret to its success: It’s almost entirely west of Troost Avenue, benefiting from years of investments in and around downtown.

The stark differences between neighborhoods in Kansas City can be found throughout America. That’s why Bruce Katz, director of the Nowak Metro Finance Lab at Drexel University, said the federal government must stop assuming that programs like the PPP are enough. What’s often missing in communities is a robust small-business support system to make sure people without banking connections or much money get the help, too.

“Unless you’re thinking about delivery of this locally, it falls flat,” Katz said. “We’re trying to get it embedded in every part of Biden policy that we can.”

Michael L. Barrera, director of the SBA’s Kansas City district office, said that since he stepped into the job in February, he’s been on an outreach tear. A former president of both the Hispanic Chamber of Commerce of Greater Kansas City and U.S. Hispanic Chamber of Commerce, he’s been repeatedly talking to local business groups — including the Asian, Black and Hispanic chambers — about the PPP and other pandemic assistance programs.

“We can’t contact every business in our district, so we have to rely on our partners to do that,” he said. “And having relationships with these partners is going to be critical going forward.”

PPP data for January through March shows the once-redlined areas of Kansas City’s East Side still falling short, though the gap has narrowed. City Councilwoman Melissa Robinson, whose district includes 64128, traces those better results to all-hands-on-deck efforts by people on the East Side. She said she pressed to get funding for the local Prospect Business Association so it could help more firms with PPP applications.

KCM_Maskgiveaway063020JAT02
Melissa Robinson, 3rd District councilwoman in Kansas City, right, helped distribute masks at a bus stop at 31st Street and Prospect Avenue in late June. Jill Toyoshiba jtoyoshiba@kcstar.com

And the Heartland Black Chamber of Commerce, headquartered in Kansas City and covering four Midwestern states, pieced together government funding and donations to launch its own program in February. By the third day, about 100 businesses had applied for the help.

“The need is so great,” said Kim Randolph, chief executive of the organization.

There’s still time, though not a lot: The program’s application deadline is May 31. And the money might run out before then.

Kansas City Mayor Quinton Lucas, who grew up on the East Side, said the local experience with the PPP illustrates a broader national problem: The federal government keeps relying on local advocates to fix inequities that should have been anticipated from the start. “Rarely are there ever exceptions, particularly when you see the initial rollout of programs,” he said. “It is, as a Black man, incredibly frustrating.”

Not many of Randolph’s members obtained a PPP loan last year, when quick help was most needed. It was clear last spring that the pandemic was hitting U.S. communities of color particularly hard and fast — the number of Black small business owners dropped 41 percent nationally between February and April 2020, compared with 17 percent for white entrepreneurs. Randolph thinks the country should be ashamed of how the PPP rolled out.

“When the dust settles, we’re going to have a desert,” she said. “If we don’t do something about it now, we’re going to be in a worse situation than we ever thought we could be.”

One-eighth of a cent

For every dollar on which Kansas City collects sales tax, half a cent goes to parks. A quarter-cent flows to public-safety services. In two of the city’s counties, an eighth of a cent goes to the zoo.

Leaders of the local Urban Summit wondered: What if an eighth of a cent also went to economic development east of Troost?

Among the people posing that question was Karen E. Curls, president of a real estate services company. Her father, one of the city’s first African American real estate brokers, founded the firm in 1952 — four years after the U.S. Supreme Court declared racist restrictions in deeds legally unenforceable and 16 years before Congress passed the federal Fair Housing Act.

Those bans on real estate discrimination did not redress the damage already done. Areas like 64128 are caught in a vicious cycle, unable to get much investment because they were blocked from it for so long.

In theory, the city’s tax incentives for economic development could disrupt that cycle. But a 2018 report for Kansas City pointed out what East Side residents knew years earlier: Most incentives go to projects in already “high-value” parts of the city, particularly downtown.

If Kansas City voters agreed to charge themselves an eighth-of-a-cent sales tax for East Side efforts, that money couldn’t get diverted. It would be a step, Urban Summit leaders thought, toward banishing redlining’s ghosts.

“Let’s say that: a step,” Curls said. “But this staircase is very long.”

Supporters of the tax gathered signatures to put the measure on the ballot, then went door to door in 2017, urging people on both sides of the Troost divide to vote yes.

They did.

That’s generated more than $32 million over three-and-a-half years for an area that stretches from a street just east of Troost to the western quarter of 64128. Money is flowing to projects ranging from a shopping center renovation to a new childcare center, filling gaps in financing.

“The one-eighth-cent sales tax is really a godsend for us,” said Marquita Taylor, president of the Santa Fe Area Council, whose neighborhood is receiving $610,000 to help residents fix roofs and make other home repairs. What Santa Fe pieced together for the project isn’t enough, Taylor said, but still, “the impact is going to be so great.”

KCM_Prospect111519JW3
Marquita Taylor, president of the Santa Fe Area Council James Wooldridge jawooldridge@kcstar.com

The sales tax is an idea people in other cities could try. But it’s no cure-all, as Curls warned. It runs out in 2027 unless voters reauthorize it for another decade. Work was painfully slow to get started. And the amount of money pales compared with development needs, frustrating residents as proposed projects lose out.

The city tax incentives that largely go elsewhere, meanwhile, are far larger.

Those incentives drained nearly $100 million in revenue from the city in 2019 alone, according to a calculation by Good Jobs First. That’s mostly through programs that let developers put money they would have paid in taxes toward project costs instead.

The Kansas City Public Schools district serves a portion of the city that includes both the heavily subsidized downtown and the 64128 ZIP code. Its officials calculated that the district lost $1,069 per student to tax abatements in the 2018-19 school year — far more than other, mostly whiter districts in the city.

“Enough is enough,” Superintendent Mark T. Bedell wrote in a 2020 letter after a firm that had its property tax wiped out for two decades asked for 13 years more. That “speaks loudly to the systemically racist real estate practices we have allowed to exist here.”

Amid growing outrage, the City Council denied the firm’s request and recently reduced the level of incentives developers can get. The council also tweaked rules to better target tax breaks to the distressed neighborhoods that keep missing out. But exceptions in the new law could undermine that goal.

Robinson, the councilwoman, wants more reform because she sees no practical difference between redlining and modern-day decisions about where to funnel investment. “It’s just much more covert,” she said.

Ajia Morris, an East Side resident who rehabs houses locally, would like efforts that invest “directly in the people who live there.” Support for small businesses, for instance, or a mortgage pool to help renters buy. Her company, The Greenline Initiative, named in reaction to redlining, finds that East Side rents are just as high as — or higher than — a mortgage would be.

Morris, a lawyer and former school board member, said what gets classified as “investment” in the area often extracts money from the people there rather than going to them.

DSC9910-Ajia-Hero
Ajia Morris Landon Vonderschmidt

One program launched by the city’s health department and a local community development corporation last year does get funds into the hands of startups on the East Side, though the grants are small — $2,000 maximum. Kansas City and the Community Capital Fund see entrepreneurship as a way to increase well-being in an area where, in the case of 64128, people die nearly 18 years younger on average than in the greenlined 64113. (The reason for that disparity, the health department says in a blunt assessment: racism, including the “devastating & lasting impact” of redlining and later practices.)

Megan Crook, who led the Community Capital Fund when the program launched, said residents “know what’s going on in their neighborhood, they want to address it, they have the energy and ideas to address it. There’s just a lack of resources, a lack of a platform.”

Davis, whose industrial hemp startup received one of those micro grants, said lack of resources is exactly what makes the PPP harder to get in his community. Businesses without a lawyer or an accountant are at a disadvantage — and it’s no accident that his community has so many like that.

He sees redlining at the root.

“Access to capital is the main thing,” he said. “Access to capital. That’s what we need.”

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Aerial of the Kansas City Urban Orchard. Rich Sugg rsugg@kcstar.com

The Star’s Kevin Hardy contributed to this report.

Jamie Smith Hopkins is a senior reporter and editor at the Center for Public Integrity, a nonprofit investigative news organization in Washington, D.C. She can be reached at jhopkins@publicintegrity.org. Public Integrity data journalist Pratheek Rebala contributed to this article.

BEHIND OUR REPORTING

How the data was analyzed

The Center for Public Integrity, a nonprofit newsroom based in Washington, D.C., relied on multiple datasets for the analysis in this story.

The key comparison uses Paycheck Protection Program data from the Small Business Administration by ZIP code alongside small employer figures from the Census Bureau’s ZIP Codes Business Patterns. We calculated each area’s share of Kansas City small employers, firms with fewer than 500 employees. Then we determined how many more — or fewer — PPP loans each ZIP code received than it would have gotten had it received the same share of loans as its share of small employers.

There’s no way to determine what percentage of eligible businesses received a loan. That’s because entrepreneurs without employees can apply for help from the PPP, too, and the Census Bureau doesn’t track their numbers by ZIP code. But our comparison shows which areas got a lot of access to the program, or just a little, compared with their employer base.

Public Integrity also relied on census demographic figures and “redlining” maps from the University of Richmond, which led a team that digitized documents from the federal Home Owners’ Loan Corp. These detail the U.S. government’s Depression-era redlining grades around the country.

This practice hardened patterns of real estate discrimination, with long-lasting effects. As the University of Richmond notes on its “Mapping Inequality” site, “HOLC assumed and insisted that the residency of African Americans and immigrants, as well as working-class whites, compromised the values of homes and the security of mortgages.”

As a result, the university said, the federal government “directed both public and private capital to native-born white families and away from African American and immigrant families.”

Areas colored green on HOLC maps, graded “A,” were deemed a good risk for bank investment. Areas given the lowest grade, “D,” were colored red and declared “hazardous” for investment. In Kansas City, not all redlined areas had Black residents. But all areas with more than a handful of Black residents were redlined. Black residents still make up many of the residents in these investment-starved neighborhoods today.

Public Integrity determined which ZIP code each graded area fell into, then identified each ZIP with a recorded number of Black residents at the point of redlining (that is, more than “few”) and more than half of the land area graded “D.” Four of the five are on the city’s East Side, the geographic focus of our story, and together these four received substantially less access to the PPP than if the loans had been equally distributed around the city. ZIP codes where more than half the land area was graded “A” or “B” — both west of Troost — received markedly more.

So: What about that single ZIP code, 64108, that sits against the city’s western boundary but was also largely graded D and had a recorded number of Black residents at the time? All but a small piece is west of Troost Avenue, which became the city’s de facto racial dividing line, and it’s had a different trajectory than the East Side — with far easier access to lending, including the PPP.

Victoria Orozco at Drexel University’s Nowak Metro Finance Lab, Robert Nelson at the University of Richmond, Brent Never at the University of Missouri-Kansas City and the National Community Reinvestment Coalition’s Bruce Mitchell, Jason Richardson and Jad Edlebi offered feedback and advice at various stages of the analysis.



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Why Koizumi’s ‘it’s now or never’ shtick fell flat https://hsmcohio.com/why-koizumis-its-now-or-never-shtick-fell-flat/ https://hsmcohio.com/why-koizumis-its-now-or-never-shtick-fell-flat/#respond Sun, 25 Apr 2021 20:00:00 +0000 https://hsmcohio.com/why-koizumis-its-now-or-never-shtick-fell-flat/ William Pesek is an award-winning Tokyo-based journalist and author of “Japanization: What the World Can Learn from Japan’s Lost Decades”. The memory of Junichiro Koizumi that resonates the most all these years later: the Elvis Summit. In July 2006, the world leader with one of the best manes of all time, Japanese Prime Minister Koizumi, […]]]>


William Pesek is an award-winning Tokyo-based journalist and author of “Japanization: What the World Can Learn from Japan’s Lost Decades”.

The memory of Junichiro Koizumi that resonates the most all these years later: the Elvis Summit.

In July 2006, the world leader with one of the best manes of all time, Japanese Prime Minister Koizumi, joined US President George W. Bush at Graceland in Memphis, Tennessee. There, along with Elvis Presley’s widow Priscilla and bewildered members of the world media, Koizumi donned The King sunglasses, played aerial guitar, and sang the lines of “Love Me Tender” and “Fools Rush In” in the infamous Jungle Room.

Now, the 20th anniversary of the start of arguably the most important Japanese prime minister in decades, Koizumi’s antics in Tokyo circles from 2001 to 2006 look no less entertaining – or consistent.

Shinzo Abe had been around longer – almost eight years – but posterity will give Koizumi’s tenure much more weight. Abe’s mentor has done more to upend the frozen political dynamics in Tokyo and put real structural reform on the books. He was the rare populist to have used his charisma to make things better.

Junichiro Koizumi does his Elvis Presley impersonation for Priscilla, second from left, and George W. Bush, right, in the Jungle Room of the late singer’s house in Memphis in June 2006. © Reuters

Abe spoke of a great game of breaking down bureaucratic walls, painful deregulation and shattering vested interests. The same goes for Prime Minister Yoshihide Suga now. But maverick Koizumi wrote the book that Abe and Suga slept in.

Concrete example: the privatization of the gigantic Japan Post. For years, this state giant with some 400,000 employees and 25,000 branches embodied the bloat and graft that led to the bad debt crisis in Japan in the 1990s and undermined reform efforts.

The centerpiece of Japan Post was the world’s largest savings institution with billions of dollars in assets. The Postal Savings Bank was where politicians, using various funding systems, went to fund pet projects in the home districts.

In addition to removing politicians’ hands from their corrupt piggy banks, Koizumi urged banks to appropriate the scale of their bad loans from the 1990s and write them down. He took the “State of Construction”, planning 10% cuts in public works spending and public debt. He attacked the powerful agricultural lobby, the social security bureaucracy, the medical establishment and others, in Koizumi’s words, “sacred cows.”

It wasn’t just what Koizumi had attempted, but how. He challenged the partisan formula of seeking consensus behind the scenes by appealing directly to the people. He used his immense popularity, his Richard Gere-style beauty and the shameful “Lionheart” newsletter of factional dueling in parliament to support reform.

I don’t wanna, well, worship this man. The Koizumi era is its own uplifting tale of what might have been. His support for Bush’s disastrous 2003 invasion of Iraq – even while navigating the pacifist constitution to send troops – has not aged well.

Ditto for Koizumi’s visits to Tokyo’s Yasukuni Shrine, where Japanese war dead are interned with war criminals. It spoiled relations with China and South Korea. And although Koizumi is now an anti-nuclear activist – after the Fukushima crisis – he too has championed “reactor economics”.

Yet perhaps Koizumi’s biggest mistake is his choice of successors: Abe, who during his first stint as prime minister in 2006 put aside economic reforms in favor of national security. It lasted for a year, setting up a cycle of leaders who come and go in an instant. Posterity is unlikely to spend much time on the governments of Yasuo Fukuda, Taro Aso, Yukio Hatoyama, Naoto Kan, Yoshihiko Noda, Abe 2.0, and even today’s Suga administration.

One of the reasons it’s worth retracing Koizumi’s footsteps is because he centralized power in the prime minister’s office, laying the groundwork for a strong reformer to organize big changes. Instead, we can draw direct lines between that time and the political paralysis of today.

Koizumi, of course, bequeathed us both incarnations of Abe. It was the ally of Koizumi Toshihiro Nikai, the No. 2 leader of the Liberal Democratic Party, who helped Suga to rise to the top post. When Suga took over from Abe last September, political fools thought they sensed a big dose of Koizumi in his political goals. Suga, after all, served as Koizumi’s senior vice minister for internal affairs and communications. So far, however, Suga has read more in Abe’s playbook: All Carrots and No Sticks.

Abe returned to office in 2012 with bold speeches on easing labor markets, cutting red tape, spurring a startup boom and empowering women. However, it mainly relied on aggressive central bank easing and an old-fashioned spillover economy. Abe believed that hosting a spectacular Olympic Games alone would propel Tokyo into the future. As a result, Suga is the eighth government since Koizumi’s struggle to eradicate deflation.

All of this makes for an infuriating mental experience. What if Abe 1.0 had accelerated Koizumi’s reforms 15 years ago, instead of throwing them in the desk drawer? Japan could put more tech unicorns on the shelf. It might not follow Angola and Sri Lanka when it comes to gender equality. It could be the alternative seat as China strangles Hong Kong.

If Koizumi’s followers had relied less on a weaker yen, Japan Inc. could have done more to raise its competitive game, much like Germany did. Had they clashed with bureaucrats opposed to Tokyo’s change, Japan might not be bottom of the class among developed countries on COVID-19 vaccinations.

Once again, Koizumi, now 79, has had his fair share of missteps and missed opportunities. Yet he showed the LDP the power to focus on one or two comprehensive reforms to inspire a sense that big change is doable. Rather than awakening the animal spirit of Japan, the eight governments since Koizumi have tried to push the genie into the proverbial bottle.

In 2001, Koizumi released an album: “Junichiro Koizumi Presents: My Favorite Elvis Songs”. While it contains all of the usual suspicious Elvis classics, Koizumi joked at the time that we should pay special attention to why he included “It’s now or never”. If only the rulers parade since then had too.



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Lee-Russell Council of Governments uses emergency experience to help citizens | Lifestyles https://hsmcohio.com/lee-russell-council-of-governments-uses-emergency-experience-to-help-citizens-lifestyles/ https://hsmcohio.com/lee-russell-council-of-governments-uses-emergency-experience-to-help-citizens-lifestyles/#respond Sun, 25 Apr 2021 18:00:00 +0000 https://hsmcohio.com/lee-russell-council-of-governments-uses-emergency-experience-to-help-citizens-lifestyles/ Over the years, the Lee-Russell Council of Governments has been called upon to respond to many emergencies, but never anything to compare with the challenges posed in a year of COVID. With a large number of practical services, LRCOG has worked tirelessly and creatively to deliver to its customers, on many fronts. Lee-Russell Council of […]]]>


Over the years, the Lee-Russell Council of Governments has been called upon to respond to many emergencies, but never anything to compare with the challenges posed in a year of COVID.

With a large number of practical services, LRCOG has worked tirelessly and creatively to deliver to its customers, on many fronts.

Lee-Russell Council of Governor is a regional planning agency that provides aging, transit, and economic planning and development programs to our member governments to promote collaborative efforts, develop and administer grants and to serve as a clearinghouse to attract and administer for the federal government, the states. , and local funds that come to our region. In response to the pandemic, the Lee-Russell Council of Governments has been busier than ever and has continued to serve the elderly and disabled, transit customers, businesses and citizens of Lee and Russell counties. during this difficult time. We continue to look for additional ways to meet the needs of the community and provide essential services to the people we serve through our many programs. All of our services continued uninterrupted, albeit often in new and innovative ways. In addition to our existing programs, we have served residents of Lee and Russell counties in the following ways:



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Carole Boster: Be aware of fair housing obligations and rights | Notice https://hsmcohio.com/carole-boster-be-aware-of-fair-housing-obligations-and-rights-notice/ https://hsmcohio.com/carole-boster-be-aware-of-fair-housing-obligations-and-rights-notice/#respond Sun, 25 Apr 2021 04:00:00 +0000 https://hsmcohio.com/carole-boster-be-aware-of-fair-housing-obligations-and-rights-notice/ April is National Fair Housing Month, featuring a wide range of laws including advertising, selling, leasing, financing, and brokerage services related to housing transactions. The purpose of the law is to ensure that all people can live where they can afford to live. The four protected categories in federal law generating the most complaints in […]]]>


April is National Fair Housing Month, featuring a wide range of laws including advertising, selling, leasing, financing, and brokerage services related to housing transactions. The purpose of the law is to ensure that all people can live where they can afford to live. The four protected categories in federal law generating the most complaints in 2019 were disability, 59.4%; race, 26%; monitoring of family status and reprisals, each at 10%.

The Fair Housing Act prohibits denying a person with a disability permission to make reasonable modifications to an existing rental unit (at the tenant’s expense). If the housing is federally funded, changes are the responsibility of the housing provider. Fair housing makes it illegal to refuse to make reasonable accommodations to rules, policies, practices or services that would allow a person with a disability to have equal opportunity to use housing. An “animal free” policy cannot exclude a comfort, service or assistance animal if a medical need can be demonstrated.

Multi-family residential units of four or more persons with first occupation after March 13, 1991, whether funded by the private sector or the federal government, must meet the accessibility requirements of the Fair Housing Amendments Act of 1988. The law requires that all units on the first floor be accessible and adaptable for people with disabilities (not a percentage of units). If there is more than one ground floor or if there is an elevator, all units on all floors must be accessible. If the funding is federal, an additional 5% of the units must be fully accessible to people with disabilities.

Race complaints can be made if the complainant is white, black, multiracial, or because of their association with people of another race. A full range of housing available for rent or for sale should be presented to qualified housing seekers, avoiding heading to certain areas where some providers may assume that housing seekers may be more comfortable or that l location is more desirable to them.

Family status is defined as a person who has custody of another person who has not reached the age of 18, is in the process of adopting that person or a pregnant woman. Housing providers cannot refuse a housing opportunity based on the number, age or gender of those occupying a housing. The total number of occupants in the units may be based on the occupancy codes of the living area, but not on the adult / child ratio. Exceptions include federally funded housing for specific populations, such as the elderly or people with disabilities.

Retaliation complaints in housing transactions can arise from the perception that a person has reported or complained about housing situations. To file a reprisal complaint, the link with the complainant’s group must be established.

Some housing providers may mistakenly believe that not advertising in newspapers or on the Internet then circumvents fair housing laws. As part of the enforcement of fair housing complaints, advertising includes window sign, yard, social media post, flyers and minor posts, etc.

The Huntington Relations Commission is a civil rights law enforcement agency that deals with complaints of discrimination in employment, housing and public accommodation on the basis of race, sex, national origin , color, religion, disability, marital status, sexual orientation or veteran status. . The alleged violation must have occurred within the city limits of Huntington within 365 days of filing. For more information, contact Marshall Moss, General Manager, at 304-696-5540 ext 2014.

Carole Boster is a member of the Huntington Human Relations Commission and a retired senior researcher for the US Department of Housing and Urban Development.



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Synchrony announces quarterly common stock dividend of $ 0.22 per share https://hsmcohio.com/synchrony-announces-quarterly-common-stock-dividend-of-0-22-per-share/ https://hsmcohio.com/synchrony-announces-quarterly-common-stock-dividend-of-0-22-per-share/#respond Thu, 22 Apr 2021 20:44:00 +0000 https://hsmcohio.com/synchrony-announces-quarterly-common-stock-dividend-of-0-22-per-share/ Bloomberg Big Oil sees money coming, but investors won’t get it yet (Bloomberg) – After one of the most difficult years in the history of the oil industry, crude prices have recovered and major producers are finally generating cash. Investors really want to get their hands on it, but most will likely be disappointed, as […]]]>


Bloomberg

Big Oil sees money coming, but investors won’t get it yet

(Bloomberg) – After one of the most difficult years in the history of the oil industry, crude prices have recovered and major producers are finally generating cash. Investors really want to get their hands on it, but most will likely be disappointed, as the pandemic has created a legacy of debt for the world’s largest international oil companies, many of whom borrowed to fund their dividends when prices fell. Mobil Corp. and Total SE, which bore the financial pressure of maintaining payments to shareholders last year, any additional cash will go towards debt relief. Chevron Corp. and Royal Dutch Shell Plc have said they want to resume buyouts, but not yet. Only BP Plc is suspending the possibility that returns to shareholders will improve soon, after a year and a half of turnaround on its payments policy. First quarter results for the coming week should show a significant improvement in earnings and of cash flow after a disaster. 2020, but probably nothing that will change investors’ disenchantment with oil majors. “They have limited appeal as long-term investments because they cannot demonstrate that they can generate cash flow on a sustainable basis and return it on a sustainable basis,” said Christyan Malek, Head of Sector Oil & Gas EMEA at JPMorgan Chase & Co .. “The key is consistency. We haven’t had any. The first quarter will be an inflection point for the industry, according to JPMorgan. Company data and estimates compiled by Bloomberg show free cash flow – what’s left after operating expenses and investments – is expected to rebound to $ 80 billion for the five supermajors this year, from around $ 4 billion. By 2020, with around $ 22 billion, Exxon will total $ 19 billion and even the lowest-ranked BP will have around $ 11 billion. That will be enough for each of the five majors to cover their expected dividends for 2021 and together have more than $ 35 billion remaining. It is not known how much of this could end up in the pockets of shareholders. First quarter free cash flow will vary, ”said Will Hares, analyst at Bloomberg Intelligence. “BP has reached its debt target and should announce the resumption of buybacks. Shell announced a slight increase in the dividend, but it is unlikely to resume buybacks given its net debt target of $ 65 billion. BP buyouts After increasing its dividend by 2.4% in February 2020, then cutting the payout in half six months later, BP came under pressure to prove that it can deliver reliable returns to shareholders. The stock of the London-based company has been the worst performing of its peer group over the past 12 months. Even its CEO Bernard Looney acknowledged that investors were wondering if BP could pull off its reinvention for the low-carbon era. Earlier this month, BP managed to stand out from its peers in a positive way, signaling the clearer of imminent redemptions. The company said it hit its goal of reducing its net debt to $ 35 billion about a year ahead of schedule and will provide an update on the timing of share buybacks on Tuesday when the season opens. Big Oil results. improve shareholder returns. In August, BP had set its goal of returning 60% of excess cash to investors as the fifth priority after dividend financing, reducing net debt, shifting spending to low-carbon projects. and spending on basic oil and gas assets. Peers, whose stocks performed better last year, are not moving as fast. France Total, which was the only major oil company in the region to maintain its dividend last year, said any extra cash from rising oil prices will be used to reduce debt. Its next priority will be to increase investments in renewable energy to around 25% of its overall budget. Redemptions will only come after that. Shell announced a 4% increase in its dividend in October, after cutting the payment by two-thirds earlier in the year. Its goal is to reduce its net debt by $ 10 billion before returning additional money to shareholders. Banks such as Citigroup Inc. and HSBC Holdings Plc predict that this will not happen until 2022, as net debt rose in the last quarter of 2020 to $ 75 billion Unlike BP and Shell, the North American majors have been successful. through 2020 with their payments. intact, but at a high cost. Exxon’s debt jumped 40% during the pandemic to $ 73 billion, prompting Moody’s Investors Service to downgrade the company’s bonds twice in the past 12 months. losses. The company said it would maintain its annual dividend of $ 15 billion while paying off debt if oil and gas prices remain at current levels. JPMorgan sees Exxon’s free cash flow rebound to $ 19.6 billion this year, giving it a sizable surplus to reduce borrowing. Of the five supermajors, Chevron has the best track record and “good prospects” for a stock buyback, according to HSBC analyst Gordon Gray. The California-based company said in March it is expected to generate $ 25 billion in free cash on top of its dividend until 2025 if Brent stays at $ 60. As the pandemic unfolded last year, companies cut spending to the lowest combined level in 15 years, according to data compiled by Bloomberg Intelligence. The grip will continue this year, with investment spending only increasing slightly despite the recovery in oil. Chevron and Exxon have both blocked spending plans at drastically reduced levels until 2025. Total has slightly increased its capital budget for this year, as BP and Shell have set a hard cap on spending. If the combination of rising oil prices, lower spending, and asset sales results in increased cash flow that will help solve short-term supermajors’ problems, it could be. creating a long-term headache. Shell admitted earlier this month that it was not investing enough in new projects to offset the natural decline in production from its existing oil and gas fields. Bell. In the long run, “capex cuts, debt, and divestitures could do as much if not more harm than good, and none are truly sustainable.” For more articles like this, please visit us at bloomberg.com’s business news source. © 2021 Bloomberg LP



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Affordable Housing Opened in Lineage Apartments https://hsmcohio.com/affordable-housing-opened-in-lineage-apartments/ https://hsmcohio.com/affordable-housing-opened-in-lineage-apartments/#respond Thu, 22 Apr 2021 13:12:59 +0000 https://hsmcohio.com/affordable-housing-opened-in-lineage-apartments/ A new affordable housing project welcomed its first residents this week to the Old Town. Lineage Apartments on North Patrick Street accommodate residents who earn 30-60% of the area’s median income. The apartments replace 15 old Ramsey houses with 52 new units – one, two and three bedroom pet-friendly apartments. The apartments are under development […]]]>


A new affordable housing project welcomed its first residents this week to the Old Town.

Lineage Apartments on North Patrick Street accommodate residents who earn 30-60% of the area’s median income.

The apartments replace 15 old Ramsey houses with 52 new units – one, two and three bedroom pet-friendly apartments.

The apartments are under development by Alexandria Housing Development Corp. for about four years, with a tax credit for the project and a loan from the city of Alexandria. Historic preservation advocates lobbied to preserve and renovate the Ramsey Houses, but city officials decided they could provide more housing by redeveloping.

Affordable housing is a serious problem in Alexandria, where house prices continue to rise and developers seem more interested in “luxury apartments”.

“Our brand new affordable one, two and three bedroom apartments are designed with you in mind,” according to Edgewater Management. “You’ll love having the convenience of onsite covered parking in our attached garage. When you open your door you will be greeted with your light and bright apartment and 6 foot tall windows to overlook the view showcasing the stunning Old Town of Alexandria. When you’re not enjoying the comforts of your brand new pet-friendly home, you can take advantage of everything around. “

There are several more affordable apartments to come, including a major redevelopment in Old Town South and an upcoming development on Seminary Road. In addition, AHDC is working on a major new construction project in the Arlandria district.

by the staff of Alexandria Living magazine

April 22, 2021

9:03



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How much does it cost to have a dog and a cat? https://hsmcohio.com/how-much-does-it-cost-to-have-a-dog-and-a-cat/ https://hsmcohio.com/how-much-does-it-cost-to-have-a-dog-and-a-cat/#respond Wed, 21 Apr 2021 13:52:56 +0000 https://hsmcohio.com/how-much-does-it-cost-to-have-a-dog-and-a-cat/ Bloomberg Big Oil sees money coming, but investors won’t get it yet (Bloomberg) – After one of the most difficult years in the history of the oil industry, crude prices have recovered and major producers are finally generating cash. Investors really want to get their hands on it, but most will likely be disappointed, as […]]]>


Bloomberg

Big Oil sees money coming, but investors won’t get it yet

(Bloomberg) – After one of the most difficult years in the history of the oil industry, crude prices have recovered and major producers are finally generating cash. Investors really want to get their hands on it, but most will likely be disappointed, as the pandemic has created a legacy of debt for the world’s largest international oil companies, many of whom borrowed to fund their dividends when prices fell. Mobil Corp. and Total SE, which bore the financial pressure of maintaining payments to shareholders last year, any additional cash will go towards debt relief. Chevron Corp. and Royal Dutch Shell Plc have said they want to resume buyouts, but not yet. Only BP Plc is suspending the possibility that returns to shareholders will improve soon, after a year and a half of turnaround on its payments policy. First quarter results for the coming week should show a significant improvement in earnings and of cash flow after a disaster. 2020, but probably nothing that will change investors’ disenchantment with oil majors. “They have limited appeal as long-term investments because they cannot demonstrate that they can generate cash flow on a sustainable basis and return it on a sustainable basis,” said Christyan Malek, Head of Sector Oil & Gas EMEA at JPMorgan Chase & Co .. “The key is consistency. We haven’t had any. The first quarter will be an inflection point for the industry, according to JPMorgan. Company data and estimates compiled by Bloomberg show free cash flow – what’s left after operating expenses and investments – is expected to rebound to $ 80 billion for the five supermajors this year, from around $ 4 billion. By 2020, with around $ 22 billion, Exxon will total $ 19 billion and even the lowest-ranked BP will have around $ 11 billion. That will be enough for each of the five majors to cover their expected dividends for 2021 and together have more than $ 35 billion remaining. It is not known how much of this could end up in the pockets of shareholders. First quarter free cash flow will vary, ”said Will Hares, analyst at Bloomberg Intelligence. “BP has reached its debt target and should announce the resumption of buybacks. Shell announced a slight increase in the dividend, but it is unlikely to resume buybacks given its net debt target of $ 65 billion. BP buyouts After increasing its dividend by 2.4% in February 2020, then cutting the payout in half six months later, BP came under pressure to prove that it can deliver reliable returns to shareholders. The stock of the London-based company has been the worst performing of its peer group over the past 12 months. Even its CEO Bernard Looney acknowledged that investors were wondering if BP could pull off its reinvention for the low-carbon era. Earlier this month, BP managed to stand out from its peers in a positive way, signaling the clearer of imminent redemptions. The company said it hit its goal of reducing its net debt to $ 35 billion about a year ahead of schedule and will provide an update on the timing of share buybacks on Tuesday when the season opens. Big Oil results. improve shareholder returns. In August, BP had set its goal of returning 60% of excess cash to investors as the fifth priority after dividend financing, reducing net debt, shifting spending to low-carbon projects. and spending on basic oil and gas assets. Peers, whose stocks performed better last year, are not moving as fast. France Total, which was the only major oil company in the region to maintain its dividend last year, said any extra cash from rising oil prices will be used to reduce debt. Its next priority will be to increase investments in renewable energy to around 25% of its overall budget. Redemptions will only come after that. Shell announced a 4% increase in its dividend in October, after cutting the payment by two-thirds earlier in the year. Its goal is to reduce its net debt by $ 10 billion before returning additional money to shareholders. Banks such as Citigroup Inc. and HSBC Holdings Plc predict that this will not happen until 2022, as net debt rose in the last quarter of 2020 to $ 75 billion Unlike BP and Shell, the North American majors have been successful. through 2020 with their payments. intact, but at a high cost. Exxon’s debt jumped 40% during the pandemic to $ 73 billion, prompting Moody’s Investors Service to downgrade the company’s bonds twice in the past 12 months. losses. The company said it would maintain its annual dividend of $ 15 billion while paying off debt if oil and gas prices remain at current levels. JPMorgan sees Exxon’s free cash flow rebound to $ 19.6 billion this year, giving it a sizable surplus to reduce borrowing. Of the five supermajors, Chevron has the best track record and “good prospects” for a stock buyback, according to HSBC analyst Gordon Gray. The California-based company said in March it is expected to generate $ 25 billion in free cash on top of its dividend until 2025 if Brent stays at $ 60. As the pandemic unfolded last year, companies cut spending to the lowest combined level in 15 years, according to data compiled by Bloomberg Intelligence. The grip will continue this year, with investment spending only increasing slightly despite the recovery in oil. Chevron and Exxon have both blocked spending plans at drastically reduced levels until 2025. Total has slightly increased its capital budget for this year, as BP and Shell have set a hard cap on spending. If the combination of rising oil prices, lower spending, and asset sales results in increased cash flow that will help solve short-term supermajors’ problems, it could be. creating a long-term headache. Shell admitted earlier this month that it was not investing enough in new projects to offset the natural decline in production from its existing oil and gas fields. Bell. In the long run, “capex cuts, debt, and divestitures could do as much if not more harm than good, and none are truly sustainable.” For more articles like this, please visit us at bloomberg.com’s business news source. © 2021 Bloomberg LP



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